On September 24, 2019, the Department of Labor announced its final rule updating the salary threshold necessary to exempt certain employees from the Fair Labor Standards Act’s minimum wage and overtime requirements. While the final rule leaves in place the job duties test, it raises the salary threshold from $23,660 to $35,568 (or $684 per week). The Department of Labor indicated that the new salary threshold accounts for growth in employee earnings since the rule was last updated back in 2004. The final rule will take effect on January 1, 2020, giving employers only a few months to identify any currently exempt employees who are paid less than the new salary threshold and determine if those employees should be given a raise or reclassified as non-exempt.
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